TMI Blog2022 (10) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has not filed the return of income u/s 139(1) we are of the view that the matter needs to be examined whether the assessee has complied with any other conditions mandated u/s 10AA - A.O. shall also examine whether the assessee has correctly computed the claim CIT(A) in the impugned order has stated that the assessee has claimed excess deduction u/s 10AA. Deduction u/s 35(1)(i) - expenditure on scientific research - HELD THAT:- The details with regard to expenditure claimed u/s 35(1)(i) was disallowed by the A.O. for the reason that the assessee has failed to furnish the details of the claim. The assessee had debited to Profit and Loss account under the 'other expenses . The details of the 'other expenses are placed on record filed by the assessee. However, the bifurcation/schedule of the 'product development expenses has not been provided. The assessee is now claiming the benefit of deduction u/s 37 of the I.T.Act and the details of the said claim is not before the Tribunal. Therefore, in the interest of justice and equity, we are of the view that the matter needs to be examined afresh by the A.O. The assessee shall provide the necessary details of bifurcati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions for claiming deduction under the section is that the appellant to file certificate from Chartered Accountant along with the return. Section 10A is Special provision in respect of newly established undertakings in free trade zonhe, etc. Sec.10B is Special provisions in respect of newly established hundred per cent export-oriented undertaking, whereas Sec.10AA is a special provision in respect of newly established Units in Special Economic Zones and the scheme of deduction available of almost same as deduction available under Sec.10A 10B and some of the sub-sections such as 5 6 of Sec.10A and 10B are applicable to Sec.10AA also. The due date for return of income is 30/11/2013 for the A.Y. 2013-14 whereas the return of income filed on 23/03/2014 filed belatedly. Further, it has been observed that the deduction u/s 10AA claimed, being sixth year of the claim should have been exactly 50% of the profits and gains for further five subsequent assessment years. Whereas the deduction claimed was Rs.1,09,55,99,171 which is less than 50%. When the AR was questioned he could not give any satisfactory explanation but for filing the copy of Form 56F. However, it is seen from the calcu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g appropriate clauses and providing that the exemption shall not be allowed unless the return of income is filed within the specified due date u/s 139(1) of the I.T.Act. The restrictive clauses provided u/s 10A and 10B of the I.T.Act are tabulated as under:- Sl. No. Section Restrictive clause (i) 10A Proviso to sub section (1A) of section 10A reads as under: (1A) (i) (ii) Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub section (1) of section 139. (Note : There was no restriction originally and the said proviso u/s 10(1A) was inserted by the Finance Act, 2005 w.e.f. 01.04.2006; applicable to the AY 2006-07 onwards) (ii) 10B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with the provisions of this section. (6) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years, or of any previous year, relevant to any subsequent assessment year,- (i) section 32, section 32A, section 33, section 35 and clause (ix) of sub-section (1) of section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant assessment years ending before the 1st day of April, 2001, in relation to any building, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year relevant to such assessment year or any expenditure incurred for the purposes of such business in such previous year had been given full effect to for that assessment year itself and accordingly subsection (2) of section 32, clause (ii) of sub-section (3) of section 32A, clause (ii) of sub-section (2) of section 33, sub-section (4) of section 35 or the second proviso to clause (ix) of sub-section (1) of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions. These amendments are made effective from particular date and in some cases, retrospective effect has been given. That is to say that a conditionality of filing a return within the specified due date u/s 139(1) of the I.T.Act in order to be entitled to a particular deduction / exemption ought to be made in the section itself and cannot be superimposed. In other words, it is not for the AO or the CIT(A) to rewrite the Law and Rule that exemption is not to be allowed since the return of income was not filed within the specified due date u/s 139(1) of the I.T.Act. 13. Section 80AC of the I.T.Act was amended by the Finance Act, 2007 by inserting section 80ID / 80IE of the I.T.Act in order to extend the restrictive clause to the said sections, and it has application only for the post-amendment assessment years. In other words, in the absence of restrictive clause prior to the amendment, it is not permissible to impose the restriction in sections 80ID/80IE of the I.T.Act for the pre-amendment assessment years. It is settled law that express mention of one or more things in a particular context excludes all other found not mentioned. The maxims of statutory interpretation is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was contended that the nature of business carried on by the assessee being manufacturing and trading of medical equipments, the assessee was continuously required to develop low cost medical equipments, hence, the expenditure was incurred on scientific research. It was further contended that in the event the expenditure is not entitled to deduction u/s 35(1)(i) of the I.T.Act, the same is to be allowed as deduction under the general provisions of section 37 of the I.T.Act as business expenditure on R D Product Development etc. The CIT(A) rejected the contentions of the assessee. The CIT(A) after analyzing section 35(1)(i) of the I.T.Act, held that the said deduction does not qualify for deduction u/s 35(1)(i) of the I.T.Act. The CIT(A) did not specifically adjudicated on the issue whether the assessee was entitled to deduction u/s 37 of the I.T.Act. 18. Aggrieved by the order of the CIT(A), the assessee has raised this issue before the Tribunal. The learned AR reiterated the submissions made before the Income Tax Authorities. 19. The learned DR, on the other hand, supported the orders of the AO and the CIT(A). 20. We have heard rival submissions and perused the mater ..... X X X X Extracts X X X X X X X X Extracts X X X X
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